BirthStar CPD — lifecycle investing with target date funds

BirthStar has launched the second report in the Rethinking Retirement CPD research series, 'Lifecycle investing with target date funds'.

Consumer demand and regulatory changes in the UK are driving growth of innovative solutions that are easier to use, simpler to understand, offer good value for money and create better customer outcomes. Key tools in this growing sector are asset allocation funds such as target date funds (TDFs), which are being used as a single fund whose objectives can change over the investor’s lifecycle as time goes on.

In this research paper, we outline the basic principles of TDF design and management. We also provide insights into how they help deliver good customer outcomes and a simplified and intuitive approach to investing — both from investment theory and behavioural science perspectives.